Internet in India is drawing fair number of eyeballs, interest, conversation and investment.
Through putting my business perspective, thoughts and understanding of the "space" in this blog and by encouraging readers to comment and contribute I am attempting a more comprehensive business view of the Internet Industry in India.
I encourage readers to contribute and take this dialogue forward.

Friday, February 09, 2007

Indian Online Advertising Market

I estimate the following size of the Indian Online Advertising Market during the year 2006 (Jan-Dec basis)

Display Advertising Revenues

Rediff 15.0

Yahoo 12.0

Indiatimes 6.0

Web18 Group 3.0

MSN 2.5

Sify 2.0

Naukri 1.3

WebDunia 0.8

Others 5.0

Total Display 47.5

Search Advertising 15

Grand Total 62.5

Key trends that have emerged during the last year:

- Search accounts for almost 24% of the total Ad Market- 90% of online advertising revenues go to Top 8-10 portals / portal group sites.- Growth in Online advertising over 2005 is close to 100%.- Most of the advertising is being sold directly by the Publishers. Ad networks still do not enjoy a noticeable share- Almost 30-40% of Advertising is happening through Direct deals between Advertisers & Publishers.- More and more advertisers are using online medium- Almost 70% of Online Advertising is happening for "performance"- Largest categories are Internet players & Financial services. These two together would account for close to 60% spends.

Anurag, any info on who are some of the online advertisement networks that have India targeted ads? I was doing some research but didn't find any significant ones. In fact it doesn't even look like there is an India specific Adsense by Google yet. Same for YSM, no India focus just yet.

I guess its because of the fact that the online advertising market is still minuscule in India compared to global markets. But with the market increasing, this looks like a gap (small players just cannot afford to contact individual big advertisers). Thoughts?

Anurag,Very good information.Does Rediff's share include Pay4click?According to REDIFF Quarterly Report,"Within India, Online revenues from online advertising increased to $4.52 million or 103% over the prior year quarter". Hence, on an Annualized basis it comes to $16 million.(15% Share)According to Pinstrom reporthttp://www.iamai.in/iamai_rep_060926_final_for_web02.pdfThe Indian Advertisers targeting Indian Audience using Search Engine is $16 million (15% Share)The number does match with Rediff.This puts the Total Indian Online Advertising Market by Indian advertiser targeting Indian audience to $106 million.

Madhur,Alootechie had an article on upcoming online Indian ad network. http://www.alootechie.com/news_detail.asp?id=1265

Madhur - Ravi did mention about a post on Aloo Techie http://www.alootechie.com/news_detail.asp?id=1265. Tribal fusion is one global network that is operating in India. And yes I completely believe that over the period of next 12-24 months we will see more Ad networks emerging in the Indian Online space. Early efforts are being made by Tyroo, Ozone, Komli etc.

Ravi - I have taken the estimates on Calendar year Jan-Dec 2006. Since the market is growing fast and the base is small this itself would explain a lot of the difference between your estimates and mine.

Reached your blogs though my friends blog roll. Thanks for all the interesting information about the online advertising in India.I run a online startup and need a suggestion from you related to online advertising.

Recently a Mumbai based big media firm contacted us to host some promotion for Citibank and asked for the rate card. I was not sure what price I should quote to them. It will be great if you can share some key points about how I should evaluate the importance of my business and decide on the rates.

Hi there Anurag, I am writing a piece for uni on the development of the SEO industry in India and was wondering if you could help me with this. I was wondering if you could give me in-sight into the leading 5 companies in India as well as your reasons for choosing these. I would also like to know your views on the future of SEO in India

Hullo Anurag,I keep reading ur blog. Really informative. I'm an MBA student doing a project on network marketing companies in india. Need the figures (revenues, market shares, commissions) for some indian companies. Would greatly appreciate if you could help me with this. U could mail me at deepanvita6@mica.ac.in

I guess online ADs has a long long way to go over here. People do start relating to a brand but where s online shopping, or purchases. We still prefer to buy in real physical marketplaces. Its growing at a good pace but still, it will take some time to get into every household and make people more aware.

Hi anurag...I am wondering why is rediff still the leader in online portals?..yahoo, google are also getting local content and local language..yahoos technology is better. Please share your thoughts on why Yahoo has not been able to surpass rediff

hi anurag,found your blog very enlightening. m a journalist currently workin onj a story on online advertising trends for indian websites. considering your knowledge on it, i was wondering if you help me please.waiting to hear from you.

I am Janki Vyas, a MMS first year student and temporarily a part of the HR team at a JWT, Mumbai. As part of my project i am looking for New Media Experts...people who can come and share insights with our senior management. Thats when i came across your profile....i was wondering if you would be open to coming in for a session on new media- internet, etc. Also, would you be able to suggest people who i could get in touch with for the same?

Sorry if im bothering you! its just that i dont kn where to start looking...it would be great if you could help!

Very interesting article. I want know the to the break up of the online amount spent by financial services industry (Share trading, Insurance etc). I would really appreciate if you could give some authentic sources.

I am Chandresh Bind an experts in Web promotion/Internet marketing/Search engine marketing last 3 years. can you explain about what is future of internet marketing after 15 years latter in India.SEO Services DelhiWeb Development India

About Me

An MBA from IIM Ahmedabad 1989 batch with work experience across diverse industries. - Internet, Media, FMCG, Office Automation & Stock Broking.
I have successfully set up operations for UK's leading online marketing company - dgm.(www.dgm-india.com). DGM India is one of the leading networks in the Internet space in India.
Prior to this I had a brief stint with India's leading Interactive Agency - Mediaturf in Delhi as EVP & Director.
I have also worked for 4 years with one of India’s largest Internet entity – Indiatimes.com. I was instrumental in creating and heading the “Subscriptions” business. Starting in February 2003 with a single product Indiatimes Meramail, the business today has a very large number of paid users across varied products like Tenders, eTesting etc.